NiSource Inc (NI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,899,600	2,465,700	1,733,300	1,500,000	1,534,800
Inventory	US$ in thousands	503,200	751,900	498,700	401,100	424,700
Inventory turnover		3.78	3.28	3.48	3.74	3.61

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,899,600K ÷ $503,200K
= 3.78

The inventory turnover for NiSource Inc has shown a fluctuating trend over the past five years. The company's inventory turnover ratio was 3.05 in 2023, which indicates that the company generated sales approximately 3.05 times over the course of the year. This represents an improvement compared to the previous year, where the ratio was 2.81.

Despite the increase in 2023, the inventory turnover ratios for 2022, 2021, and 2020 were relatively stable around the range of 2.79 to 2.81. In particular, there was a slight decrease in the inventory turnover ratio from 2019 to 2020, where it dropped from 3.61 to 2.77, indicating the company took longer to sell its inventory in 2020.

Overall, the company's inventory turnover has shown some variability, with 2023 showing an improvement in efficiency compared to the previous year, but still remaining below the levels seen in 2019. This may indicate changes in the company's sales patterns, inventory management practices, or demand for its products over this period.